Buying Off-plan Property in Dubai – Pros & Cons


Buying off-plan property in Dubai is usually more affordable than purchasing already built apartments and houses. However, while the lower price of a property that doesn’t yet exist is certainly attractive, it also hides a number of risks, which should be wisely considered before signing a Sales and Purchase Agreement. In order to make the right decision, you should know about the pros and cons of buying off-plan property in Dubai.

The Concept

The concept of buying off-plan is to invest at current prices and once the development is completed, your investment will be worth more. This is usually how it works and therefore, when well-established property developers launch new projects in Dubai, investors are lining up with their checkbooks ready. There are plenty of opportunities in UAE since new developments are being announced nearly every week. In addition, many off-plan properties or even some near completion are listed for resale.


Price – Normally, purchasing a property under construction is more affordable than purchasing a ready-to-move-in home. This is the greatest benefit of the off-plan home buying concept – after all, for the majority of people, the price is the most important aspect of the deal.

Appreciation – If you manage to assess right the potential of an off-plan property, its value after completion can appreciate at least by 20% or even more. At present, the residential market is active as many developers have reduced their prices. Home prices are expected to increase by 2020 when UAE will host Expo 2020 Dubai.

Logically, if you buy a home under development right now, by 2020 its price may climb up to 50% (or even more). If you decide to sell it, you will be able to make a considerable profit.

Payment plans – Developers in Dubai are offering very attractive payment plans, including really small amounts as deposits. Now you can easily find a property, which requires only 10% of the price as a down payment. Then, you will have to pay the rest in installments until the completion, which can be after two or three years. There are even a few projects offering payment scheme that allow investors to complete the payments during the two years after completion and handover.

These relaxed conditions are coming in a time when new mortgage rules are already effective across the UAE. It’s getting harder to get a loan due to the new requirements and loan caps, so developers’ offers for purchasing off-plan sound good. Still, if you possess a good knowledge of the real estate market, you can find a lender who will process your application in a week and offer you an interest rate of 3.85% or similar.


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